Question 1

The industry life cycle influences the strategies of firms that compete in them.

Accepted Answer

A) True 
 B)False

Question 2

What is the definition of generic strategy?

Accepted Answer

A generic strategy is a strategic positi

Question 3

MES varies by industry and market segment.

Accepted Answer

A) True 
 B)False

Question 4

Customization and convenient access are both drivers of the low-cost strategic position.

Accepted Answer

A) True 
 B)False

Question 5

During the industry's growth phase, differentiators will increase their efforts toward differentiation.

Accepted Answer

A) True 
 B)False

Question 6

Why is market analysis critical to successful pursuit of the differentiation strategy?

Accepted Answer

In practice, a differentiation strategy

Question 7

Economies of scale occur when average total costs decrease at higher levels of output.

Accepted Answer

A) True 
 B)False

Question 8

All of the following are phases in the industry life cycle except ________.

Accepted Answer

A)  embryonic 
B)  growth 
C)  maturity 
D)  erosion 
A)  embryonic 
B)  growth 
C)  maturity 
D)  erosion

Question 9

When evaluating the quality of a firm's strategy, the most critical question that should be asked is ________.

Accepted Answer

A)  Does the strategy make sense in the business environment? 
B)  Is the strategy cost effective? 
C)  Can the strategy be implemented? 
D)  Can the strategy be duplicated across similar firms? 
A)  Does the strategy make sense in the business environment? 
B)  Is the strategy cost effective? 
C)  Can the strategy be implemented? 
D)  Can the strategy be duplicated across similar firms?

Question 10

Marginal cost is the cost of ________.

Accepted Answer

A)  raw materials and labor 
B)  the last unit of production 
C)  rent and equipment 
D)  all expenses incurred by the firm 
A)  raw materials and labor 
B)  the last unit of production 
C)  rent and equipment 
D)  all expenses incurred by the firm

Question 11

Porter's generic strategies may also be called strategic positions.

Accepted Answer

A) True 
 B)False

Question 12

What are diseconomies of scale?

Accepted Answer

Diseconomies of scale are conditions und

Question 13

The output level that delivers the lowest possible costs is the ________.

Accepted Answer

A)  minimum efficient scale 
B)  average production level 
C)  marginal cost scale 
D)  median cost level 
A)  minimum efficient scale 
B)  average production level 
C)  marginal cost scale 
D)  median cost level

Question 14

The likelihood of a firm achieving its objectives is maximized when its vision strategy and industry conditions are aligned.

Accepted Answer

A) True 
 B)False

Question 15

Differentiation strategists work to create a common brand image.

Accepted Answer

A) True 
 B)False

Question 16

Identifying specific subgroups of buyers who have distinguishable needs is called ________.

Accepted Answer

A)  market segmentation 
B)  product analysis 
C)  buyer division 
D)  market design 
A)  market segmentation 
B)  product analysis 
C)  buyer division 
D)  market design

Question 17

Economies of scope are similar to economies of scale.

Accepted Answer

A) True 
 B)False

Question 18

The automobile industry is a commodity market.

Accepted Answer

A) True 
 B)False

Question 19

Economies of scale exist if average costs are lower at higher levels of production. What actions can be taken by firms that result in economies of scale?

Accepted Answer

Economies of scale can result from a var

Question 20

During the initial stages of finding a position that works for a firm, strategists decide if they will compete based on the logic of being a low-cost leader or as a ________.

Accepted Answer

A)  differentiator 
B)  mid-level competitor 
C)  unique product operation 
D)  generic brand 
A)  differentiator 
B)  mid-level competitor 
C)  unique product operation 
D)  generic brand

The industry life cycle influences the strategies of firms that compete in them.

What is the definition of generic strategy?

MES varies by industry and market segment.

Customization and convenient access are both drivers of the low-cost strategic position.

During the industry's growth phase, differentiators will increase their efforts toward differentiation.

Why is market analysis critical to successful pursuit of the differentiation strategy?

Economies of scale occur when average total costs decrease at higher levels of output.

All of the following are phases in the industry life cycle except ________.

When evaluating the quality of a firm's strategy, the most critical question that should be asked is ________.

Marginal cost is the cost of ________.

Porter's generic strategies may also be called strategic positions.

What are diseconomies of scale?

The output level that delivers the lowest possible costs is the ________.

The likelihood of a firm achieving its objectives is maximized when its vision strategy and industry conditions are aligned.

Differentiation strategists work to create a common brand image.

Identifying specific subgroups of buyers who have distinguishable needs is called ________.

Economies of scope are similar to economies of scale.

The automobile industry is a commodity market.

Economies of scale exist if average costs are lower at higher levels of production. What actions can be taken by firms that result in economies of scale?

During the initial stages of finding a position that works for a firm, strategists decide if they will compete based on the logic of being a low-cost leader or as a ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

Exam 5: Creating Business Strategies

The industry life cycle influences the strategies of firms that compete in them.

What is the definition of generic strategy?

MES varies by industry and market segment.

Customization and convenient access are both drivers of the low-cost strategic position.

During the industry's growth phase, differentiators will increase their efforts toward differentiation.

Why is market analysis critical to successful pursuit of the differentiation strategy?

Economies of scale occur when average total costs decrease at higher levels of output.

All of the following are phases in the industry life cycle except ________.

When evaluating the quality of a firm's strategy, the most critical question that should be asked is ________.

Marginal cost is the cost of ________.

Porter's generic strategies may also be called strategic positions.

What are diseconomies of scale?

The output level that delivers the lowest possible costs is the ________.

The likelihood of a firm achieving its objectives is maximized when its vision strategy and industry conditions are aligned.

Differentiation strategists work to create a common brand image.

Identifying specific subgroups of buyers who have distinguishable needs is called ________.

Economies of scope are similar to economies of scale.

The automobile industry is a commodity market.

Economies of scale exist if average costs are lower at higher levels of production. What actions can be taken by firms that result in economies of scale?

During the initial stages of finding a position that works for a firm, strategists decide if they will compete based on the logic of being a low-cost leader or as a ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters